ASEAN, EU say free trade offers benefits to all

ASEAN, EU say free trade offers benefits to all

BANGKOK (Reuter): Increased trade between Europe and Southeast Asia offers more jobs and increased prosperity to both sides, senior officials from the regions said yesterday.

In a joint news conference after meeting economic ministers of the Association of Southeast Nations (ASEAN), European Commission Vice-President Leon Brittan said more European exports would help cut European unemployment while greater investment in Asia would raise living standards here.

"I believe that opening our doors to trade is not a favor to others, but a favor to ourselves as it helps our own economy. That is true for us all," Brittan said.

Thai Deputy Prime Minister Amnuay Virawan agreed: "It will be mutually beneficial to us to promote inter-regional trade and investment".

Some Asian officials also see closer ties with Europe as a way of balancing the perceived domination of the Asia-Pacific region by the United States.

"It's always desirable to have a counter-weight, to have a balance in our relationships whether on a global basis or on a regional basis," Amnuay said.

ASEAN groups Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

Brittan, who is responsible for trade and commercial matters at the European Union's (EU) executive arm, said yesterday's meeting with ASEAN, the first of its kind, marked a significant step towards free trade between the regions and in the world.

"In particular it has allowed us to prepare the ground for the meeting of the heads of government of the EU and Asia which will take place at the beginning of March (1996)," he said.

"It has set the stage for the further liberalization of trade in Europe...and in Asia," he said.

Telecommunications

"We believe it is necessary to open trade on a world level. We have cleared the air and we have cleared the decks for action."

Brittan said the meeting had discussed the possibility of new protocols on international telecommunications leading to a world agreement on the industry.

He said the continuing rise in intra-ASEAN trade, a topic which dominated a day-long meeting of ASEAN economic ministers on Sunday, was no threat to Europe.

"I don't think one could possibly complain about an increase in trade in a region so long as that comes from the lowering of barriers in the region rather than the raising of external barriers," he said.

Brittan told Reuters earlier in an interview that ASEAN expected Europe to reciprocate if it lowered tariff barriers.

"The Thai leaders I have spoken to are very open to the idea and indeed are challenging us to say...that if they lower barriers on a non-discriminatory basis there will in due course be a response," he said.

ASEAN economies have grown by an average of seven to eight percent over the last decade -- the fastest rate of growth of any economic bloc in the world.

Brittan said trade would continue to grow exponentially between Europe and ASEAN, offering huge opportunities to Europe.

"They tell me here in Thailand about the huge opportunities there are in infrastructure, about the mass rapid transit plans for Bangkok. There are huge opportunities."